Beales signals financial trouble and bids for lowered rent

Beales Department Store in the Rochdale Exchange Shopping Centre

Beales has signalled financial difficulties, and the possibility of store closures, by seeking to cut rents.

The Rochdale store, which is the largest retailer in the Rochdale Exchange Shopping Centre, is making losses and Beales is taking action in an attempt to stay open.

A Company Voluntary Agreement (CVA) has been proposed, which is a legally binding agreement with creditors that can help alternative plans to be made and can help businesses in trouble to avoid bankruptcy.

Beales chairman Stuart Lyons said: “Most of Beales’ stores are profitable. However, a minority of our stores lose money because leases agreed some years ago are no longer sustainable due to changes in the economy and local conditions.

“These legacy rents have been dragging the group down. This is a unique opportunity to restore the group to financial health.”

Meetings of shareholders and stakeholders will be called on 24 March to approve the proposals. Landlords of the loss-making stores will be asked to reduce Beales’ rents or take the premises back.